CONSTRUCTION PROJECT MANAGEMENT 5.1
moore05
Response_5.docxD C
1. Discuss why a subcontractor’s lowest bid may not be the best.
As a contractor, you can never base your choice on the lowest bid when choosing a subcontractor. You must know if the subcontractor understands the scope of work, make sure the they are not cutting corners to provide a low bid, and make sure they have a good track record from their previous jobs. The subcontractor’s bid should only be a part of the contractor’s decision to hire, not the only part.
1. You are a general contractor and you are considering hiring Better Electrical Co. as the electrical subcontractor on a project out of town. You are unfamiliar with this company and want to be sure they are right for the job. What are the few things you will want to understand about the company before you award them the contract?
Since the project is being done out of town, first thing you have to do is make sure Better Electrical Co. is registered or licensed to work in the town where the project is going to be done. You have to make sure they are insured and bonded, you don’t want to hire a subcontractor that lacks general liability insurance or is not able to obtain a bond. Having experience in the town where the project is a plus, this way you know they can handle the project in the proposed location.
1. Subcontractor bid evaluation can be a time when a builder’s ethics can be tested. “Deals can be cut,” bid information shared, and favoritism showed. Describe an ethical breach you have experienced or read about (You can refer any such breach read online).
I don’t have any personal experience in any ethical breaches in a construction project, but one that comes to mind in charging for an expensive material and using a lower cost material. There are times when the owner and even the contractor do not keep track of the materials being purchased or the materials being used. This lack of oversight can facilitate the ethical breach practice by the subcontractor, the subcontractor can then increase their profit by using lower quality materials.
Respond
M S
1. Discuss why a subcontractor’s lowest bid may not be the best.
It is crucial to take into consideration the subcontractor’s record as well. This means knowing that the subcontractor can perform the job by complying with established terms. The estimator might consider the subcontractor’s bid in the cost estimate, and if the project is more expensive; the contractor will lose money. Therefore, not always the lowest bid is the best.
2. You are a general contractor and you are considering hiring Better Electrical Co. as the electrical subcontractor on a project out of town. You are unfamiliar with this company and want to be sure they are right for the job. What are the few things you will want to understand about the company before you award them the contract?
The most important factors to understand about a company before awarding them with a contract are reputation and experience. As mentioned in the last answer, this means knowing that the subcontractor can comply with the job specifications.
3. Subcontractor bid evaluation can be a time when a builder’s ethics can be tested. “Deals can be cut,” bid information shared, and favoritism showed. Describe an ethical breach you have experienced or read about (You can refer any such breach read online).
I have not experienced any ethical breach. However, the books describe bid shopping scenario a lot. This is when a bid is shared to reduce prices. This practice is unethical, and nobody should practice it.
Respond
J G R
1. Discuss why a subcontractor’s lowest bid may not be the best.
Not always the lowest bid is the best one for the project. It may be less money than other bids that are more expensive. It depends a lot on the services provided by the contractor. Another reason may be the materials that they are using for the project. They may not be a good quality material or, the company does not provide the best services to build the project
2. You are a general contractor and, you are considering hiring Better Electrical Co. as the electrical subcontractor on a project out of town. You are unfamiliar with this company and want to be sure they are right for the job. What are the few things you will want to understand about the company before you award them the contract?
One of the most important things to take into consideration is the previous work that company has done on past projects. Also, make sure that they are capable to complete the job that the general contractor is asking to complete for the project. Lastly, if the electrical co. has not been in legal problems before.
3. Subcontractor bid evaluation can be a time when a builder’s ethics can be tested. “Deals can be cut,” bid information shared, and favoritism showed. Describe an ethical breach you have experienced or read about (You can refer to any such breach read online).
In one of my classes named law and ethics, I read many cases that many engineers or owners were involved in ethical breaches. One example of them was the Hotel from Las Vegas named The Harmon Hotel. The ones who were in charge of the construction plans did not do the work correctly. It caused that the engineers did not make a good job when building the hotel. It caused the demolition of the hotel and a loss of money for investors, owners, and engineers.
Respond
N K
1. Discuss why a subcontractor’s lowest bid may not be the best.
It depends on how low the bid is compared to the others, when de difference in price is not much, I would not see any problem. But when there is a large difference, that is a red flag that indicates that there is something wrong with that proposal, it may be because it has an error or because the subcontractor is simply trying to cut corners to lower the price sacrificing the quality of the final product. When selecting a subcontractor for a project, the goal is to try to find the right combination between price and quality. Generally, in the end, you end up incurring more expenses correcting mistakes than if you were to choose the highest bid, so you have to be very careful when selecting a bid.
2. You are a general contractor and you are considering hiring Better Electrical Co. as the electrical subcontractor on a project out of town. You are unfamiliar with this company and want to be sure they are right for the job. What are the few things you will want to understand about the company before you award them the contract?
First, look at the company's portfolio to see if they have experience doing projects of the same size and if they have the resources for the needs of the project. After knowing that the company is competent to carry out said work, I would search about the reputation of the company, see reviews in different sources, try to contact other companies that have used them for other projects, see how many years they have been in business. , if they have sufficient capital to provide an adequate service. Finally, I would meet with them to give me an idea of how they plan to develop the project, how many workers would be available, what equipment they would use, supplies, etc.
3. Subcontractor bid evaluation can be a time when a builder’s ethics can be tested. “Deals can be cut,” bid information shared, and favoritism showed. Describe an ethical breach you have experienced or read about (You can refer any such breach read online).
When I just graduated from college and started working as a superintendent in Colombia, I saw how the subcontractors gave bribes to the project managers so that they would assign the contracts to them. To the point that some of the project managers charged them a set amount to ensure their hiring. Unfortunately, this is a very common practice in Colombia, and it is very sad to see how PMs take advantage of their position.
